Smaller companies report: Monday close

THE FTSE Small Cap index finished 1.5 points higher at 2,917.3 with Ramco Energy the top gainer of the session.

Ramco was lifted by the news that it has been granted extended waivers on loans with both its bankers and a major creditor until it has sold enough assets to repay the debt.

The Aberdeen-based independent exploration and production company said that under the agreement with its bankers, Ernst and Young has been appointed to work with Ramco to find a buyer for its 86.5 %t interest in the Seven Heads Gas field in the Celtic Sea off the south coast of Ireland. Ramco closed 7p better at 31p.

James Beattie was also upbeat, closing 33½p better at 149-½, after House of Fraser confirmed recent press speculation that they are discussions about the department stores group making a possible offer for Beatties' share capital.

Entertainment Rights ended up 1½p at 29½p, lifted by a Sunday Express article saying that Apax Partners is mulling over a bid of about £200m for the Postman Pat owner. The group also announced today it has appointed Kathleen Hricik to the newly-created post of executive vice president and managing director of the US, Canada and Latin America.

DM added 1p to 5p after the direct marketing group announced pre-tax profits for the period to 31 December 2004 rose to £1.32m, from £1.21m the previous year.News that DM expects improved overall gross margins in this financial year also lent support.

Safeland added 7p at 82½p after it said it swung to a full-year pre-tax profit of £2.426m from a loss of £1.037m a year earlier despite ‘continued challenging conditions’ in its current property market.

The company also said its net asset value per share at the year end rose to 1.05p compared to 94p in March 2004, boosted by the purchase of 1.26m of its own shares. Gearing at the year end stood at 55 % compared to 76 % a year earlier.

Among the new issues, FishWorks closed at 43-½ on its first day of trading on Aim, Shares in the restaurant group and winner of the ITV Fish Restaurant of the Year award had been placed at 33p.

Laser treatment specialist Chromogenex, which also began trading on Aim today, ended at 11¾p from a placing price of 11p.

On a more subdued note, GW Pharmaceuticals remained flat at 63½p on concerns about the company's cash position, as investors shrugged off in-line interim results and the Canadian launch of its cannabis-based multiple sclerosis medicine Sativex.

Analysts at Nomura told clients in a note the ‘overriding concern’ for the company is its cash position.